Flood insurance premiums set to fall for the first time

From 2019, Flood Re is set to reduce the premiums it charges to to insurers in the UK.

Flood Re, the UK’s national flood insurance scheme, is set to lower the cost of the plan. This will even affect those most at risk of flooding.

Flood insurance premiums

Premiums charged by Flood Re are decided through Council Tax bands. However, from 2019, this is set to decline by 12.5% for building and 33% for contents. This results in a flood insurance saving of between £44 ($57) and £112 for customers.

After consulting seven insurance firms, the insurer stated that the move would save customers money. This is despite the end-charge being decided by individual insurers.

Previously, Flood Re decided to not increase prices with inflation in April 2018. In 2017, 150,000 flood insurance claims were paid out. However, in the two years 2016, a relatively low level of claims have been paid out.

Andy Bord, chief executive of Flood Re, said: “Our purpose is to make flood cover as part of home insurance more affordable and available. I am delighted today to announce that we will help to make flood cover even more affordable for those most at risk of flooding by reducing our premiums.

“Our detailed analysis has found that we can reduce our charges to insurers, whilst maintaining a strong financial position and remaining able to respond to significant flooding in future.

“Flood Re was encouraged to note the results of our consultation, confirmed across the market, that our premium reductions will result in lower premiums for consumers. Consumers should always shop around to get the right deal for them.”